A balanced investment strategy with a strong focus on momentum and income generation

Report created on Nov 24, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is structured around three ETFs with a clear emphasis on the stock market, comprising 80% of the allocation, and bonds making up the remaining 20%. This mix indicates a strategy leaning towards growth with a cushion of income through bonds. The heavy weighting towards the Invesco S&P 500® Momentum ETF suggests a focus on stocks demonstrating strong recent performance, potentially aiming to capitalize on continuing trends. However, the concentration in a few ETFs, particularly with half of the portfolio in one momentum-focused ETF, raises questions about the breadth of diversification.

Growth Info

Historically, this portfolio has shown impressive growth with a Compound Annual Growth Rate (CAGR) of 22.65%. The maximum drawdown of -16.06% indicates a resilience in market downturns, likely cushioned by the bond allocation. The performance peaks being concentrated in just 24 days highlights the impact of short-term, high-gain events, typical of momentum investing strategies. This historical performance, while strong, should be viewed with caution as past success is not a reliable indicator of future results.

Projection Info

Monte Carlo simulations, using historical data to forecast potential outcomes, suggest a wide range of future performance with a median increase of 1,144.3%. While all simulations returned positive growth, the variance between the 5th and 67th percentiles underscores the inherent uncertainty in investing. Such projections are useful for understanding potential volatility but should not be solely relied upon for future planning due to the unpredictable nature of markets.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%

The portfolio’s asset class distribution, with a dominant stock presence, aligns with its balanced risk profile but leans towards growth. The inclusion of bonds acts as a volatility buffer, providing income and reducing overall risk. This allocation supports a strategy that seeks growth while mitigating sharp downturns, though the absence of alternative asset classes like real estate or commodities might limit diversification benefits.

Sectors Info

  • Technology
    21%
  • Financials
    16%
  • Industrials
    10%
  • Telecommunications
    9%
  • Consumer Discretionary
    7%
  • Consumer Staples
    4%
  • Energy
    4%
  • Health Care
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral allocation leans heavily towards technology and financial services, sectors known for their volatility but also potential for high returns. This concentration can amplify both gains and losses, making the portfolio's performance closely tied to the fortunes of these industries. Expanding into underrepresented sectors or adjusting allocations could help manage risk without significantly diluting growth potential.

Regions Info

  • North America
    69%
  • Europe Developed
    4%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographic exposure is predominantly North American, with minimal allocations to developed and emerging markets outside the region. This home bias could limit exposure to global growth opportunities and increase vulnerability to regional economic downturns. Broadening geographic diversification could capture growth in other economies and reduce portfolio volatility.

Market capitalization Info

  • Large-cap
    27%
  • Mega-cap
    26%
  • Mid-cap
    17%
  • Small-cap
    6%
  • Micro-cap
    3%

The market capitalization breakdown shows a balanced approach, with a mix of big, mega, and medium-cap stocks. This suggests a strategy that balances stability with growth potential. However, the relatively lower allocation to small and micro-cap stocks could mean missing out on high-growth opportunities these segments can offer, albeit with higher risk.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Efficient Frontier analysis suggests that the portfolio could achieve a higher expected return of 7.03% with the same level of risk. This indicates room for optimization, potentially by adjusting asset allocations or diversifying further. Such adjustments could enhance returns without increasing the portfolio’s risk profile, aligning more closely with the principles of modern portfolio theory.

Dividends Info

  • American Century ETF Trust 2.10%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Weighted yield (per year) 2.08%

Dividend yields contribute to the portfolio's total returns, with a notable 5.50% yield from the Janus Henderson AAA CLO ETF. This income generation complements capital gains, providing a steady cash flow. For investors prioritizing income, maintaining or increasing exposure to high-yield assets could be beneficial, though it's important to balance yield with growth potential and risk.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.18%

The portfolio's overall expense ratio of 0.18% is relatively low, enhancing net returns over time. Lower costs mean more of the portfolio’s gains are retained by the investor, a crucial factor in long-term growth. This cost efficiency is a strong aspect of the portfolio, supporting its performance potential.

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